Hi
Customer Hierarchy is very helpful in Pricing especially when your customer is a Multilevel buying group, chain of Retail outlets,co-operatives etc.
Suppose, you have organisation ABC as your customer and ABC has four Zonal offices E,F,G and H under it and again under them 2 Regional offices are there for each.
Sometime, Headoffice ABC purchases from you and some times the Zonal and Regional offices also purchase from you.Therefore all are your customers and it is a multilevel buying group.
ABC is the Headoffice so it is the highest level, just below it four Zonal offices and below them their respective Regional offices.
Here we maintain a Hierarchy of this Multilevel Buying group. In this structure/hierarcy each entity is called a "Node".
Customer Hierarchy consists of "Nodes".
So we create nodes, create customer master data from these nodes and assign the nodes to appropriate level.
These nodes can be moved at any time.
Advantage of customer hierarchy is that it is very helpful during Pricing.
Suppose, we want to give a discount to all these customers in this hierarchy, here we need not have to create condition record for discount with each customer, rather we just create only one condition record with the headoffice.
It will be applicale to all the subordinate level.
Suppose, we want to give some extra discount to Zonal office E (e.g northrn zone) and NOT to other Zones.
So we create a condition record with Zonal office Z, so that the extra discount will be applicable to Z and its subordinate level only, and not to others.
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